Valuations are generally made on an unimproved basis under the Valuation of Land Act 1944. Unimproved value means the amount a parcel of land could be expected to sell for at the date of valuation, assuming that no improvements exist on the land. 'Improvements' are houses, fences, levelling, filling, etc. 

• How valuations are determined
• How unimproved value affects rates
• How unimproved value affects land tax and state land rental 

How valuations are determined

Determining a valuation is a three-stage process.

Establishing a basis

As sales of vacant or lightly improved properties in the local area have proved the best basis for comparison, a registered valuer investigates such properties.

The unimproved value of the land is calculated by deducting from the sale price the value of improvements such as clearing, filling, earthworks and buildings. 

Any market movement is then derived by comparing the calculated unimproved values with existing unimproved values.

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Processing the valuation

A departmental computer system, the Queensland Valuation and Sales system (QVAS), is used to appropriately adjust all unimproved values from the previous valuation. These predicted values are then reviewed and amended, if necessary, by registered valuers before the new valuation is issued. 

Valuations currently reflect the market as at 1 October in the year before a valuation becomes effective. This is referred to as the ‘date of valuation’. On 30 June following the date of valuation, the ‘date of effect’, the new valuations come into force for :

• local government rating purposes
• the assessment of land tax by the Office of State Revenue
• the calculation of state land rental by the Department of Natural Resources and Water.

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Notifying owners and displaying new valuations

When a new valuation is made, notices are posted to the owners advising them of the result. In some instances, the owner of a property may receive two valuation notices :

• the annual valuation for rating and taxing purposes, printed on a blue background.
• the rental valuation, to be used as a basis for calculating state land rental, printed on a green background.
• the land tax valuation, which may be used as a basis for the assessment of land tax by the Office of State Revenue, printed on a brown background.

The valuation amounts shown on these notices may be different because of particular provisions in the Valuation of Land Act 1944.

Information from these valuations is then placed on a valuation roll.

Valuation rolls showing the annual valuation amount are placed on public display from the date of issue at the relevant Natural Resources and Water offices and other locations. The timing and location of the display is advised on the notice of valuation posted to owners.

Valuation rolls for rental properties and those used for land tax purposes only are not placed on public display.

Additional information:

The department provides sample valuation and market tables for major residential localities on it's web site during the period that the valuation roll is on display.  Information is provided on the range of new values for particular localities, average percentage movement, median new values and sample property sales that were considered when determining land values for rating and taxing purposes.  This information is provided to help landowners understand how the new valuation compares with other residential values in the same suburb and local government area.

Please note: The information is indicative only and actual sale properties are not identified. Details of properties which have been sold may be obtained from the Department's Client Service Centres upon the payment of a fee.

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How unimproved value affects rates

While unimproved land values - "annual valuation amounts", are the basis for rate calculations, each local government is responsible for setting the actual rate in the dollar that is used to determine the level of rates. There are two components to rates :

• the general rate (this may be different for various rating categories); and
• other charges and levies.

Local governments calculate the rate required each year to provide funds for the performance of their many duties. The council may set a minimum general rate, whereby all properties with an unimproved value below a certain amount will pay the same general rate. The council may also adopt an average of the unimproved values over the last 2 or 3 years.

It is not unusual for rates to rise or fall even though there has been no change to unimproved land values. Requests for additional information on the rating process and individual property rates should be addressed to the Chief Executive Officer of the relevant local government. 

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How unimproved value affects land tax and state land rental

As the unimproved value is used as the basis for land tax assessment and state land rental purposes, these liabilities may also be affected if the unimproved value changes as a result of the annual valuation process.